Kraken’s CF Benchmarks hits 50% dominance on crypto ETF market

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As an experienced financial analyst with a background in the crypto market, I find Kraken’s CF Benchmarks’ dominance in the crypto ETF market quite impressive. With over $24 billion worth of assets under management, representing nearly half of the crypto benchmarking market, they have undeniably capitalized on this year’s surge in demand for Bitcoin ETFs.

Kraken’s CF Benchmarks holds a leading position in the cryptocurrency Exchange-Traded Fund (ETF) market, boasting $24 billion in referential data. Preparing for growth, the company readies itself to accommodate surging demand like never before.

CF Benchmarks, a division of Kraken cryptocurrency exchange, is experiencing significant growth this year due to the surge in popularity and trading volume of Bitcoin spot Exchange-Traded Funds (ETFs). With approximately $24 billion in assets under management as of a recent Bloomberg report, CF Benchmarks accounts for nearly half of the total crypto benchmarking market.

In a recent interview, CF Benchmarks CEO Sui Chung expressed his belief that crypto Exchange-Traded Funds (ETFs) will become available in Israel and South Korea next. He noted that South Korea has exhibited a significant level of cryptocurrency acceptance.

“South Korea is a market where ETFs have become the wrapper of choice for long-term savings.”

Sui Chung

Based on our initial analysis, we anticipated managing around $5 billion worth of assets from U.S. spot Bitcoin Exchange-Traded Funds (ETFs) this year, according to our data. However, a recent disclosure by Chung revealed that the actual demand has surpassed our expectations, reaching nearly five times the projected amount.

Although the reception towards Bitcoin and Ethereum ETFs in Hong Kong has been moderate, with initial trading volumes under $13 million as reported by Bloomberg, CF Benchmarks remains hopeful about the market’s prospects. Chung expressed confidence that the firm will oversee around $1 billion in assets for its Hong Kong offerings by the close of 2024.

Around the middle of April, Hong Kong authorized the launch of Bitcoin and Ethereum exchange-traded funds (ETFs) that track the spot market. This decision came several months after the U.S. Securities and Exchange Commission (SEC) allowed various Bitcoin ETF applications to move forward in the United States. Nevertheless, while Hong Kong is making progress, the SEC seems more cautious about approving Ethereum spot ETFs, possibly delaying their approval until late 2024 or even beyond.

Founded in 2017, CF Benchmarks was later acquired by Kraken in 2019.

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2024-05-03 13:36